1. Portrait of Wall Street’s Pioneer Drug Analysts
The first biotech investment banker tells Jan how he got started in the business, as an analyst and a dealmaker, and continued to build the first formal life science focused research program at Lehman Brothers. Fred Frank, Vice-Chairman of Lehman Brothers (Barclays) discusses the tsunamis of change that are affecting the industry, and why Biotech and Pharma form natural partnerships. One is opportunity long and capital short, the other is opportunity short and capital. Fred illustrated this point by comparing the cash and innovation coming from the 100 largest pharma on one hand, and the 100 largest biotech on the other, demonstrating the need they have for one another.
2. The Future of the Industry, and the Lehman / Barclays Deal
Jan Buck asks Fred Frank where the industry is heading, and if we should be expecting radical change in the near future. Fred Frank looks at the assumptions that fueled the growth of the industry from its earliest onset, and their relevance today. He then asks Fred about the Lehman / Barclays transaction. Is it a fit? Will there be a change in activities? What will determine the success of the acquisition?
3. Blockbuster Drugs, and the 3 Eras of the Biotech Industry
Fred and Jan review the changing dynamics of the industry (pre-76, 1976 to 2000, and post-2000). They discuss the monumental changes faced by Pharma, the danger of stock buybacks, and the impact of blockbusters on the development of drugs and the valuation of companies. Fred and Jan also discuss some of the more successful business models today, including the Genentech / Roche agreement – although the recent capital acquisition does come under question.
This interview was conducted at the New York Stock Exchange, on September 23rd, 2008, in New York City.
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